Health care anyone???

I just ran into an old TIME Magazine cover story on health care - it was from July, 1998. They were making a big deal out of some problem with health care back then. Things just never change. Don't let anyone tell you otherwise.

Indebted to China

Someone said that China is now the U.S.'s unofficial banker. They hold more U.S. Treasury bills than any other country. People who work at think tanks must be worried about this, though they are not saying anything - at least not in public. What would happen if the Chinese decided to cash in their Tbills? It has been said that when you make a bank your partner, the bank cannot afford to see you go bankrupt. They will therefore not cash all their bills at once. Perhaps they will opt for 100 billion at a time? The Chinese also converted all of their bills to one-year notes - from thirty year notes. I would not pretend to know why they did that. This topless woman does not know either.

Location and possession

A reserved parking space in Manhattan costs about $700 per month. The same space in Memphis will set you back $20 per month. That's a pretty big difference. Likewise, an art piece found by a maid in an abandoned apartment is thrown in the trash because it is judged to be practically worthless. The same piece is found by someone who works at a museum and is saved and taken to the museum curator. It is now judged to be worth $2,000,000. A tattoo on the arm of a man hardly draws any attention. Put it on the lower back of a woman and you will notice a huge difference in the response. A house on the poor side of town has a value of $100,000. That same house in a pricy neighborhood is worth $145,000. A country in the hands of lazy, uneducated people has little value. In the hands of educated, hard-working people, it is priceless. An idea in the hands of a timid person will get nowhere. The same idea in the mind of a born salesman might be worth millions. What does all this mean? I don't know. You figure it out.

Current Foreclosures

Did you notice that oxymoron? Actually, it's a rather cute name for a website. This Current Foreclosure site has thousands of foreclosures listed. Might you not need an agent after you look at the list? Yup. It's always good to have an agent, whether you're a seasoned investor or a newbie. I'm not an agent but I'm sure you can find one nearby.

Foreclosures

A foreclosure is a result of the acceleration of a debt that cannot be paid as agreed. If a bank asks for all its money all at once, foreclosure is almost inevitable. It is not a bankruptcy though. A bankruptcy comes as a result of every lender coming fast upon you demanding payment in full. I often wonder why people who are about to lose title to their property do not sell prior to foreclosure. Of course, if your mortgage is upside down (when you owe more than the property is worth), it would make little difference, no.? I often wonder what would happen if banks simply restructured every bad loan - dropped the interest rate and extended the term. Is 6% unmanageable? Drop the deal to 1%. Is thirty years not enough time? Extend the deal to fifty or sixty years. A hundred years from now, people will be looking back at how homes used to be financed and they will scratch their head in bewilderment. Foreclosures only happen when everybody wants their money NOW. I say: What's the hurry?

Sell fast

If you live in one of these zip codes and are planning to sell your house, you're lucky. According to Business Week magazine, these are the fastest selling zip codes in the country - houses are averaging about 70 days on the market (compared to six months elsewhere): 94087 and 92131 (in California); 78749, 75075, and 77094 (in Texas); 97202 (in Oregon), 01880 (in Massachussetts); 98117 (in Washington); 80130 (in Colorado); and 30340 (in Georgia). According to Smart Money, the hardest hit states when the housing bubble burst were Nevada, Florida, California, and Arizona.

Advertisement

This is an experiment so don't get bent out of shape about it - please. It will probably fail because there are simply not enough daily views to statistically ensure a response - BUT ONE NEVER KNOWS. Coincidence is one of the secrets of life. Well, to get to the point.... There is this building for sale here in EP. Fourteen apartments for $325,000 - a steal. Furthermore, the price is negotiable because the owner needs to sell. It is not listed and will not be listed. I have photos and other info about the deal - should anyone be interested. End of experiment.

High Finance again

We can now all relax. Uncle Sam has decided to bail out whoever got into hot water with all the sub-prime lending done in the last five years. AIG, Bear Stearns, Merril Lynch, Fannie Mae, Washington Mutual - you name it. The government can do it because it can either print money or issue bonds. Unfortunately, most of the bonds will be bought by foreign governments, not U.S. citizens. That's the scary part. The stock market is up so the hemlines will be going up too. It's not all gloomy news. Now, real estate has to pick up again, but builders need financing, too. It's up to the banks now. Please.